"Who Else Is Doing This?"?

"Who Else Is Doing This?"

The most exasperating question asked of those who preach business innovation is “Who else is doing this?” Imagine this question being asked of Thomas Edison. Or Thomas Jefferson.

Those who persist in this query are reflecting the risk aversion that runs through the collective soul of business executives in industries from manufacturing to professional services. It’s human nature to prefer copying over innovating. The urge to copy runs deep in the human psyche. Anthropologists say that early homo sapiens improved their odds of survival by mimicking the successful behaviors of other humans, making imitation one of our most ancient behaviors.

But the responses that served us well in prehistoric times work against our best interests as modern professionals. Simply duplicating the practices of other businesses only keeps us mired in the present. Copying is “Karaoke Capitalism” that directs our limited energy and resources toward avoiding risk instead of pursuing opportunity. 

Best practices don't create the best companies

“Who else is doing this?” The standout businesses owe their success to their ability to answer “No one.” 

What grocer stocks no brand merchandise, has no sales, accepts no coupons, does no advertising, and has no loyalty program? No one — except for Trader Joes, the most profitable grocery store in America. 

What car brand has no dealers, no discounts on their cars, and accepts only online orders? No one — except for Tesla, which created a category that it continues to dominate. 

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When the answer to “Who else is doing this?” is “Most other companies,” that should steer us away from — not toward — adopting the same practices. Borrowing best practices doesn’t create the best companies. Best practices are, by definition, past practices. Worse, these collections of conventions rarely add up to a unique, coherent business strategy. Trying to build a best-in-class business by borrowing “best practices” from other companies is like trying to build a high-performance car with the “best” parts from a wide variety of automobile manufacturers. The result would not be a superior car, but rather a dysfunctional piece of machinery, because parts — like practices — must be designed to work together to support a unified whole. Much better to focus on “next practices” — those that will create new forms of value in your organization. 

”We want to lead, we just don’t want to be the first”

Author and consultant Peter Block believes that organizations waste huge amounts of time and energy looking for external validation of their actions. “What other organizations have done this?” reflects the natural need for reassurance, observes Block, but mostly indicates a lack of will. It sets up the confusing dynamic of wanting the company to lead, but not be the first.

Change should not be dependent on someone else changing. Your mission as a business leader is to differentiate, not duplicate. Most businesses have numerous unexplored, undiscovered and undeveloped points of distinction. In one of the classic articles on the subject, authors Ian MacMillan and Rita Gunther McGrath offer this simple summary of business success: “Most profitable strategies are built on differentiation: offering customers something they value that competitors don’t have.” 

By definition, new approaches are likely to have few adopters. That’s the point of progress; someone has to be first. 

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Tim Williams leads Ignition Consulting Group, an international consultancy that advises professional service firms in the areas of business strategy and pricing practices. Tim is the author of several books, including "Positioning for Professionals: How Professional Knowledge Firms Can Differentiate Their Way to Success."

Twitter: @TimWilliamsICG

Leslie Graves

Tax free retirement strategies using Insurance and Financial Strategies with KMS Financial Group

5 年

“Copying is “Karaoke Capitalism” that directs our limited energy and resources toward avoiding risk instead of pursuing opportunity”. That validates something I’ve noticed -People, by human nature, gravitate towards minimizing risk over maximizing potential. What if you can do both ?

Arvind Patel

IIT Roorkee | Blogger | Greenfield Projects, Growth Strategy & Execution, Business Operations, Service Delivery, Customer Experience | MAPFRE, Reliance & Tata Motors

5 年

Every organisation has its own set of challenges. Adopting best practices of others may not be a good idea but only a quick-fix. Its always better to find our own solutions.

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Wanda Collins

Insurance agency owner

5 年

My favorite quote from this article : in His resonates with me . “Your mission as a business leader is to differentiate, not duplicate.”

Isaac Martinez

Results-oriented IT professional with 25 years of experience delivering impactful solutions across the software development lifecycle.

5 年

I love this truth which Tim is calling out. I always thought of it as pie stealer's vs. pie makers. One can make a sure buck by copying the 'first to market' innovators, but the real prize is in owning the whole pie. Even if for a short while, owning the whole pie is the better position to be in. Eventually, the safe players will come along, mimick and take a share of the pie. But even then, whoever owns the relationship, owns the customer. Let's all be brave and try our hand a making our own pie. Guess what? You are going to make some nasty ones at first, adoption will be dismal. Don't quit trying. Refine the recipe and keep serving up pie until you win. Easier said than done, I know. But, how fun will it be when you win. Hey, remember, there is no shame in having some copy-cat ideas generating income to help fund the secret sauce. I say do both, its just smart business.

ATHANASIOS KONTOS

Ticket Sales Representative with a passion for data analysis, volunteering and running

5 年

All those years I see quotes about being the best,. The hidden message is about being the best by doing what someone "top player" did. The so called motivation, heard by life coaches etc. Perhaps adopting the best "ingredients" and personalizing them is the recipe to success. But still there is the risk that society, clients and so, won't adopt this personalisation for sure

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